A recently-listed mortgage brokerage has seen a 25 per cent surge in home loan revenue over the first quarter of the 2017 financial year, bringing its incomings to $908,000.
Mortgage broking and financial services business N1 Holdings, which listed on the ASX earlier this year, this week announced that it has achieved significant revenue growth from all businesses in the first quarter of FY17 including diversified revenue (non-home loan revenue), which it attributed to the successful execution of a product and service cross-selling strategy.
Home loan revenue has traditionally been N1’s core business. However, in September, N1 Loans submitted more than $10 million in commercial loan applications and has “a robust current pipeline of new loan applications”. The brokerage said it has seen a significant increase in enquiries for commercial lending and development funding.
Commenting on the group’s strong revenue growth, N1 Loans chief executive Ren Hor Wong said the result illustrates that N1 is continuing to strengthen its position in the market as a diversified financial and property services firm.
“Since our IPO, we have focused on a cross-selling strategy to better assist our customers and to grow complimentary revenue across the N1 group of companies,” Mr Wong said.
“These results prove that this strategy is working. To support continued growth we continue to develop our team with the recent hire of a new business development manager who will work across the N1 group of companies and seek to leverage our existing database of more than 3,000 clients,” he said.
“Our property sales team has also been enhanced with the hiring of two sales managers to focus on residential sales in the northern area of Sydney.”
N1 Realty commenced operation in July 2016 and has since signed up seven new rental management agreements which provide additional recurring annual revenue via the provision of ongoing property management services.
“On completion of the acquisition of Sydney Boutique Property, N1 Realty will add a further 162 rental management agreements to its existing property management portfolio,” Mr Wong said.
During the quarter N1 Realty also signed exclusive sales agreements with three properties in the Sydney metro area, one of which sold within two weeks of listing.
Mr Wong said there is currently more than $7 million worth of newly listed properties in N1 Realty’s pipeline being prepared for sale, all within the Sydney metro area.
N1 Migration, another recently commenced new business which provides migration services to its clients, has signed $80,000 worth of revenue during the quarter.
[Related: N1 Loans reveals real estate play]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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